Otis Worldwide Corp (OTIS)
Number of days of payables
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 1.06 | 1.12 | 1.17 | 1.24 | 1.08 | 1.18 | 1.09 | 1.24 | 1.11 | 1.29 | 1.26 | 1.37 | 1.35 | 1.30 | 1.39 | 1.47 | 2.54 | |
| Number of days of payables | days | 344.12 | 324.67 | 311.61 | 293.18 | 338.84 | 308.99 | 333.80 | 293.67 | 330.19 | 282.38 | 289.71 | 265.47 | 270.19 | 279.94 | 262.70 | 248.15 | 143.61 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.06
= 344.12
The number of days of payables for Otis Worldwide Corp has shown some fluctuations over the period under consideration. From December 31, 2020, to December 31, 2024, the days of payables have ranged from 143.61 days to 344.12 days.
The trend in days of payables indicates that the company is taking longer to pay its suppliers or vendors. The increase in the number of days of payables from 143.61 days on December 31, 2020, to 344.12 days on December 31, 2024, suggests that Otis Worldwide Corp may be delaying its payments to suppliers, potentially improving its cash flow in the short term.
However, an excessively high number of days of payables could signal potential liquidity issues or strained relationships with suppliers if extended payment terms are not mutually beneficial. It is essential for the company to manage its payables effectively to maintain good supplier relationships without jeopardizing its financial health.
Monitoring the trend in days of payables over time and comparing it to industry benchmarks can provide valuable insights into the company's liquidity management, supplier relationships, and overall financial stability.
Peer comparison
Dec 31, 2024